UBS analysts say Nike Inc. shoppers who couldn’t get to stores that were shuttered by the pandemic flocked to e-commerce channels during the fiscal third quarter. The brand’s digital earnings accounted for about 20 per cent of the company’s overall business, with digital sales rising 36 per cent on a currency-neutral basis during the fiscal third quarter.
In China, while people were isolated at home, Nike weekly active users on its activity apps increased by 80 per cent by the end of the quarter versus the beginning. Digital business in China grew 30 per cent. Nike has $5.5 billion in liquidity, accounting for just 14per cent of calendar 2019 sales. In comparison, Ralph Lauren’s 6.30 per cent or $2.4 billion, but that accounted for 38 per cent of last year’s sales.
UBS suggests t Nike will be in an even stronger competitive position when the Covid-19 situation ends versus our prior view. The brand is operating from a position of strength s demand remains strong. As Raymond James analyst’s reveals coronavirus is encouraging a majority of its consumers to shift ito digital channels.